The official unemployment rate in South Africa has seen a 1% increase, reaching 32.9% in the first quarter of 2025, according to the Quarterly Labour Force Survey from Statistics South Africa (Stats SA). The survey revealed a decrease of 291,000 in the number of employed persons, from 17.1 million in Q4: 2024 to 16.8 million in Q1: 2025. Unemployment rose by 237,000 to reach a total of 8.2 million people. The expanded unemployment rate grew by 1.2 percentage points, reaching 43.1%. It further indicated that employment in the formal sector reduced by 245,000, while the informal sector saw an increase of 17,000.

Stats SA tracked the number of discouraged work-seekers at an increase of 7,000 [up by 0.2%], while those not economically active for reasons beyond discouragement increased by 177,000 [up by 1.4%]. This raises the total number of inactive individuals to 16.7 million. The institution noted that employment increases were primarily seen in transport, finance, and utilities. Conversely, declines in employment rates were primarily seen in trade, construction, private households, community, social services, and mining sectors.

Youth unemployment is another area of concern as the total number of unemployed youths rose by 151,000 to 4.8 million. The number of employed youths decreased by 153,000 to 5.7 million. This leads to a youth unemployment rate increase from 44.6% in the fourth quarter of 2024 to 46.1% in the first quarter of 2025.

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